Garuda Construction IPO: Is It the Right Investment Decision?

Current IPO Market Scenario 

The Indian stock market is buzzing with new IPOs, but recent market volatility has left investors cautious.

About Garuda Construction

Founded in 2010, Garuda Construction specializes in residential, commercial, and infrastructure projects.

Business Model Overview

It offers not only construction services but also hospitality-related operations, plumbing, electrical work, and maintenance, ensuring multiple revenue streams.

Key IPO Details

– IPO Size: ₹264 crore – Fresh Issue: ₹65 crore – Offer for Sale (OFS): ₹90 crore The proceeds from the fresh issue will fund expansion.

Financial Performance

– Strong profitability in recent year – Revenue: ₹154.47 Cr (FY24) – Profit After Tax (PAT): ₹36.44 Cr (FY24)

Market Conditions and Risks

Global market volatility, rising inflation, and interest rates are key concerns. While the Garuda IPO could deliver strong returns.

Promoter Holding and Trust Factor

Promoters hold over 96% of shares, signaling confidence. However, the OFS by promoters may raise questions. Are they cashing out at the right time?

Opportunities for Retail Investors 

With 35% of the IPO reserved for retail investors, small investors. A balanced allocation across investor categories makes it appealing for all types of buyers.

Conclusion: Should You Invest?

The Garuda Construction IPO offers long-term growth potential in the construction sector. This IPO is ideal for investors with a higher risk appetite and long-term focus.